05:40 AM EST, 01/29/2025 (MT Newswires) -- Zimmer Biomet Holdings ( ZBH ) said Tuesday it plans to acquire all outstanding Paragon 28 ( FNA ) shares for $13 per share in cash, at a total equity value of about $1.1 billion.

The company said the deal also includes a contingent value right, allowing Paragon 28 ( FNA ) shareholders to receive up to $1 per share in cash if specific revenue milestones are met during Zimmer Biomet's ( ZBH ) fiscal year 2026.

The medical device maker said the acquisition, which both companies' boards have unanimously approved, is expected to accelerate its revenue growth.

Paragon 28 ( FNA ) has projected 2024 revenue of between $255.9 million to $256.2 million, or 18.2% to 18.4% growth year-over-year.

Zimmer Biomet ( ZBH ) said it plans to finance the deal, which is expected to close in H1 2025, using available cash and other available debt financing sources.

The transaction is anticipated to be 3% dilutive to adjusted earnings per share in 2025, 1% dilutive in 2026, and accretive to adjusted earnings per share within 24 months after closing, it added.